Bitcoin Surges Above $57,000, But Investors Still Shorting: Fuel For More Rise?

Data shows derivatives exchange users are still shorting Bitcoin after the recovery that the cryptocurrency has enjoyed beyond the $57,000 mark. Bitcoin Funding Rate Is Still Negative On Major Exchanges According to data from the analytics firm Santiment, investors have been shorting BTC for the last few days. The indicator of interest here is the [...]

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Solana (SOL) Surges Past $130 Resistance As Funding Rate Signals Bullish Momentum

The crypto market experienced a notable surge yesterday, with Solana (SOL) breaking past the crucial 4-hour resistance at $130. This breakout has caught the attention of investors, who now anticipate a potential price surge in the coming months as market sentiment remains optimistic. Related Reading: Solana (SOL) 180-Day Consolidation Set to Break: Massive Rally Just Around the Corner? Many analysts are forecasting further gains, pointing to Solanas recent performance as a key indicator of its strength. Investors are particularly focused on SOL’s ability to maintain its momentum, with growing demand and increased interest fueling bullish predictions for the altcoin. In addition to market enthusiasm, Coinglass’s on-chain metrics reveal a positive outlook for Solana. These metrics reinforce the bullish momentum, suggesting a potential Solana rally. As more investors look to capitalize on these trends, Solana’s performance could soon play a crucial role in determining the overall market direction for altcoins. Solana On-Chain Metrics Suggest Strength   Solana is currently testing local supply and attempting to break past a crucial daily resistance level at $137l, as on-chain metrics from Coinglass reveal a strong bullish sentiment among traders and investors.  One key metric highlighting this bullish sentiment is Solana’s Open Interest (OI)-Weighted Funding Rate, which currently stands at +0.0068%. When the funding rate is positive, traders holding long positions pay funding fees to those with short positions, which typically indicates expectations for rising prices. This suggests bullish momentum is building, with traders anticipating a short-term rally in Solanas price. The growing interest from long positions further supports the thesis that Solana may be gearing up for a price surge. Bulls dominate the asset, and the data indicates a strong possibility that SOL could break out of its current trading range if the market conditions remain favorable. However, for this bullish outlook to hold, Solana must break through its current resistance level at $138 and close a daily candle above this key point. If the price breaks and holds above $138, it could signal a potential move toward higher price targets in the coming weeks. Related Reading: Avalanche (AVAX) Ready To Target $28: Investors Expect A Reversal As the market evolves, traders will closely watch Solanas price action and market structure to gauge whether a significant rally is imminent. In the meantime, Solana continues to show promise, with bullish indicators supporting a positive short-term outlook for the asset. SOL Price Action Solana (SOL) is currently trading at $135, just 4.5% away from a crucial technical indicator: the 4-hour 200 exponential moving average (EMA), which sits at $141.14. This level is a key marker of strength for SOL, and reclaiming it would signal that the bulls are gaining momentum. If SOL successfully breaks through the $135 resistance level and reclaims the 4-hour 200 EMA, it could trigger a significant upward move toward the $160 supply zone. This would mark a major recovery for the asset, potentially attracting more buyers and pushing the price higher. Related Reading: Cardano (ADA) Rally Brewing? On-Chain Metrics Suggest Investors Optimism However, if Solana fails to break past the $135 resistance, a retracement to lower demand levels is likely. $126 is the buyers’ next potential support level to step in and prevent a price drop. As SOL continues to test these key levels, traders are watching closely to see whether the bulls can maintain control or if a correction is on the horizon. Featured image from Dall-E, chart from TradingView

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Bitcoin Funding Rates Turn Negative: Shorts Turn To Get Squeezed?

Data shows the Bitcoin funding rates on exchanges have turned negative, a sign that the shorts have now become the dominant force in the market. Bitcoin Funding Rates Have Turned Negative After Market Crash As pointed out by an analyst in a CryptoQuant Quicktake post, the Bitcoin funding rates have seen a sharp decline recently. The “funding rate” refers to a metric that keeps track of the periodic fee that derivatives contract holders are currently exchanging with each other. When the value of this indicator is positive, it means the long investors are paying a premium to the short ones in order to hold onto their positions. Such a trend implies a bullish sentiment is shared by the majority in the sector. Related Reading: Chainlink (LINK) Recovers 20% As Network Lights Up With Activity On the other hand, the metric being negative implies a bearish mentality could be the dominant one in the market as the short holders outweigh the longs. Now, here is a chart that shows the trend in this Bitcoin indicator for all exchanges over the past few months: As displayed in the above graph, the Bitcoin funding rate had been positive throughout the year 2024, save for a couple of small dips into the negative region, until this latest crash, which finally took the indicator to notable red values. The earlier positive values were naturally due to the fact that the market had a bullish atmosphere to it, so the average investor was trying to bet on the price to rise. From the graph, it’s visible that this positive sentiment was the strongest during the rally to the all-time high (ATH) price fueled by the spot exchange-traded fund (ETF) demand. During the consolidation period that had followed this rally, BTC had seen a couple of notable drawdowns, but they weren’t enough to shake off the bullish mood. The recent sharp crash, though, appears to have finally caused investors to have a bearish outlook on the cryptocurrency. The Bitcoin crash had resulted in a huge amount of long liquidations in the market, triggering what’s known as a squeeze. In a squeeze event, a sharp swing in the price causes mass liquidations, which in turn fuels the price move further. This then unleashes a cascade of more liquidations. Since the latest such event involved the longs, it would be called a long squeeze. In general, an event of this kind is more likely to affect the side of the derivatives market that is more dominant. As this power balance has shifted towards the shorts now, it’s possible that the market could instead see a short squeeze in the near future. Related Reading: Is Bitcoin In A Bear Market Now? Heres What On-Chain Data Suggests Naturally, it’s not necessary that a short squeeze should take place, but if the price ends up witnessing some volatility, it’s possible it may end up punishing the short-heavy market. BTC Price Bitcoin has been steadily making recovery from the crash as its price has now climbed back to $57,500. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com

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Ethereum Will Remain Bearish Until This Key Trading Reading Changes

Ethereum is steady at press time, as is visible in the daily chart. Even though prices are floating above $2,500, ETH bulls are still weak. The coin remains inside the bear bar of August 27, technically inside a bear formation. From price action, it would take effort for bulls to take charge in the short term. A convincing high volume close above $3,500 would signal a rapid trend shift beneficial for holders. Will Ethereum Bears Press On? Traders Monitoring This Reading Before then, one analyst thinks the short to medium term projection for the second most valuable coin is bearish. In an analysis, citing CryptoQuant data, the analyst said over the last few months, the funding rate in Ethereum perpetuals across exchanges like Binance and OKX has been positive but falling. Related Reading: Chainlink (LINK) Could Drop To $8 If It Loses Current Support: On-Chain Data Reveals Through perpetual platforms, Ethereum traders can place positions using leverage, essentially borrowing from the exchange. The more leverage they have, the more they have to borrow, narrowing their safety margin and increasing the risk of liquidation. Depending on the prevailing price action, the funding rate in these perpetual markets can be positive or negative. Whenever the funding rate is positive, the outlook among leveraged traders is bullish. In this case, they expect prices to rise higher. For equilibrium, traders posting long positions have to pay those who are selling. Conversely, a negative funding rate means the prevailing sentiment is bearish, and the markets could fall further. In this event, short sellers must pay those posting buys. Looking at the price trend over the past few months, the analyst notes that the funding rate for Ethereum perpetuals has been consistently falling, though still in the positive territory. This state of affairs means that, though ETH has been wavy, moving even to $3,900 in May, the dominant sentiment is bearish. Eyes On Spot ETF Net Inflows For Growth Therefore, for the trend to change, there must be a sharp spike in buying interest. In turn, this will also help lift prices and funding rate across these perpetual platforms. Related Reading: Dogwifhat On The Edge: Can WIF Hold Above $1.47 As Bears Close In? Rising funding rates will signal a shift in trend, helping spur demand. One of the many factors that may drive prices is inflows to spot Ethereum ETFs in the United States. According to Soso Value, all spot Ethereum ETF issuers in the country recorded net inflows of over $5.8 million. Still, this reading is way lower than what was seen in late July. Feature image from DALLE, chart from TradingView

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Funding rate volatility shows localized trading imbalances despite market stability

The funding rate for perpetual futures serves as a proxy for market sentiment and shows the balance between long and short positions. Significant deviations from the average funding rate across exchanges can signal potential imbalances in positioning. A spike in the funding rate on a particular exchange shows a large number of long positions, which […]

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4 reasons why Bitcoin was (and still is) a buy below $70K

Technical chart patterns suggest that Bitcoin could see more upside momentum in the following weeks, mirroring previous bull cycles.

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Are Bitcoin Bears Losing Out? $31 Million Wiped Out In BTC Shorts Liquidation

The Bitcoin price couldnt sustain the bullish momentum after its ascent to the current all-time-high price of $108,786 in January, leading to a crash to around $74,000 in the following months. However, the premier cryptocurrency appears to have roared back to life. Even as the Bitcoin price sits comfortably above the important six-figure threshold, an important question sticks around is the bullish run truly back on? Recent on-chain analysis suggests that the market leader might be preparing to resume its bull run. Binance Witnesses Largest Shorts Liquidation Since April In a Quicktake post on CryptoQuant, a pseudonymous on-chain analyst, Darkfost, revealed that a large number of short positions were opened on Binance as Bitcoin dropped from its current all-time high price. According to the crypto pundit, this part of the derivatives market was a source of significant selling pressure on the price of BTC in the following months. Related Reading: Bitcoin Advanced NVT Sits Above This Critical Threshold What It Means For Price Action Darkfost went on to explain that as the price of BTC started its recovery, these short positions, expectedly although slowly, got liquidated, becoming buying pressure for the cryptocurrency. This series of slow liquidations, however, spiked on May 8 to a new single-day high since as far back as March. According to CryptoQuant data, over $31 million in short positions were wiped out on Binance, the worlds largest exchange by trading volume. The chart below is of the on-chain indicator showing the amount of liquidations in USD the Short Liquidations USD metric. Furthermore, Darkfost revealed that the relatively low level of funding rates is around 0.004. This trend suggests the abundant presence of short positions in the market, and also the unwillingness of Binance traders to go long.  Darkfost concluded that further liquidations or closures of these short positions could cause Bitcoin’s bullish trend to regain its momentum, thus facilitating further growth of the premier cryptocurrency. The crypto analyst also mentioned the possibility that this potential regain of bullish strength could push the flagship cryptocurrency to break above its previous all-time-high price. Bitcoin Price At A Glance As of this writing, the price of BTC stands at around $104,335, reflecting an over 1% increase in the past day. According to CoinGecko data, the flagship cryptocurrency has grown by nearly 9% in the past seven days. Related Reading: Here Are 5 Reasons Ethereum May Reach $12,000 In 2025 Analyst Featured image from iStock, chart from TradingView

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Bitcoin Sees 4th Dip in Funding Rates This Year What Does This Mean For BTC?

Bitcoins recovery continues to show momentum, with the asset currently trading at $94,288 after gaining 1.6% over the past 24 hours. The price has now risen nearly 15% over the past two weeks, reversing a previous correction phase and pushing BTC closer to retesting the $100,000 price mark. Amid the price performance, recent market analysis points to diverging signals between BTC’s funding rate behavior and growing confidence among US-based investors. Related Reading: Bitcoin Whales Back In Full Force For The Rally, Glassnode Reveals Bitcoin Funding Rates Drop Despite Rising Prices According to Nino, an analyst from CryptoQuant,  the Bitcoin funding ratetypically used to gauge sentiment in the perpetual futures BTC market has again dipped into negative territory, even as whale accumulation continues on major exchanges like Binance and Coinbase. Nino particularly identified a notable development in Bitcoins derivatives market. The 72-hour average of BTC funding rates, including moving average indicators (MA, EMA, WMA), has entered negative territory for the fourth time this year. Funding rates refer to periodic payments made between long and short positions on perpetual futures contracts, with negative rates meaning short positions are paying long positions. This generally reflects that the market is either positioning defensively or becoming cautious at current price levels. What makes this instance notable is that previous dips into negative funding rates occurred at lower price levels, whereas the current shift has taken place above $94,000. Nino suggests this may point to potential market exhaustion or a phase of profit-taking, where short traders are more active despite upward price movement. If volatility increases and funding rates remain suppressed, a spike in liquidations could follow, especially if open interest in leveraged positions expands rapidly. Coinbase Premium and Whale Behavior Reflect US Investor Activity In a separate analysis, CryptoQuant analyst Crypto Dan noted a trend reversal beginning around April 21, accompanied by renewed buying from large holders, or whales. Notably, these purchases were first identified on Binance and were soon followed by similar activity on Coinbase. According to Dan, this pattern may indicate rising confidence among US-based investors and growing participation from institutions or high-net-worth individuals. One supporting metric is the Coinbase premium, which tracks the price difference between BTC on Coinbase and other global exchanges. A positive premium typically reflects stronger demand from US investors. Related Reading: Bitcoin Metrics on Binance Show Shift That Could Precede Market Squeeze As of now, this premium remains in positive territory, suggesting that US market participants are contributing to BTCs recent momentum. Dan concludes that the current phase may signal more than a typical price rebound and could represent a broader shift in market structure, driven by renewed capital inflows and institutional positioning. Featured image created with DALL-E, Chart from TradingView

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Bitcoin Perpetual Swaps Signal Short Bias Amid Price Rebound Details

The Bitcoin market saw another rebound in the past week as prices leaped by over 12% to hit a local peak of $95,600. Amid the ongoing market euphoria, prominent blockchain analytics company Glassnode has shared some important developments in the Bitcoin derivative markets. Related Reading: Bitcoin Apparent Demand Makes Sharp Rebound Will BTC Breakout Soon? Bitcoin Short Bets Rise Despite Price Rally, Setting Stage For Volatility Despite a bullish trading week, derivative traders are approaching the Bitcoin market with skepticism, as evidenced by a build-up of leveraged short positions. In a recent X post on April 25, Glassnode reported that Open Interest (OI) in Bitcoin perpetual swaps climbed to 218,000 BTC, marking a 15.6% increase from early March. In line with market activity, this rise in Open Interest aligns with increased leverage, introducing the potential for market volatility via liquidations or stop-outs.   Generally, a rise in Open Interest amidst a price rally is expected to signal long-term market confidence. However, Glassnodes findings have revealed an opposite scenario. Despite Bitcoin’s bullish strides in the past week, short market positions appear to be dominating the perpetual futures markets. This concerning development is indicated by a decline in the average funding rate, which has now slipped into negative territory to sit around -0.023%. The perpetual funding rate is a periodic payment between long and short traders aimed at keeping the contract price in line with the underlying spot price. A negative funding rate indicates short traders pay long traders as Bitcoins perpetual contract price is trading below the spot price. This is caused by a higher number of short positions as traders are largely bearish about Bitcoin, even despite recent gains. Furthermore, the 7-day moving average (7DMA) of long-side funding premiums has dropped to $88,000 per hour, reinforcing this short-dominant sentiment. This downtrend indicates a waning demand for long positions, as traders exhibit a short bias. However, Glassnode presents a bullish note stating that the present combination of rising leverage and short positions paves the way for a potential short squeeze, where an unexpected upward price move forces short-sellers to close their positions, thereby driving prices even higher. Bitcoin Price Overview At the time of writing, Bitcoin trades at $94,629 following a 1.01% retracement from its local peak price on April 25. Despite creeping developments in the perpetual futures market, the BTC market remains highly bullish, indicated by gains of 1.02%, 11.12%, and 8.32% in the last one, seven, and thirty days, respectively. With a market cap of $1.88 trillion, the premier cryptocurrency ranks as the largest digital asset and fifth-largest asset in the world. Related Reading: Ethereum To Hit $5k Before Its 10th Birthday, Justin Sun Says Featured image from Adobe Stock, chart from Tradingview

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Bitcoin ETF: Key BTC Metrics Remained Mixed As Flows Turn Positive

Investor confidence is returning to Bitcoin ETFs with recent strong inflows; however, the situation is complicated by mixed metrics

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Funding rate turns negative as Bitcoin drops below $64k

Perpetual futures are a type of derivatives contract unique to the crypto market. Unlike traditional futures, which have a set expiration date, perpetual futures never expire, allowing traders to hold their positions indefinitely. To make this type of contract financially viable, the market employs a mechanism called the funding rate. Funding rates are periodic payments […]

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Bitcoin Funding Rates Hit 14-Month High – What Could This Mean For The Market Leader?

The crypto market has started the year 2023 with a remarkable, bullish run. Over the last few days, several assets have recorded significant profits and are starting to pull through the crypto winter. Most notably, Bitcoin, the market leader and the world’s biggest digital asset, has been one of the top-performing coins this year. In the last seven days, BTC gained by more than 17%, allowing the coin to surpass the $20,000 price mark for the first time since the start of the FTX crisis. Bitcoin’s impressive price rally has generated much excitement among the crypto community, along with a significant rise in the positive sentiment around the entire crypto market. However, it appears there might be a need for alertness among investors in the coming days.  Related Reading: Bitcoin Price Touches $20,000 For First Time Post-FTX Collapse Bitcoin Records Highest Funding Rates In Over A Year  According to a post by Maartun, a top analyst on the crypto analytics platform Crypto Quant, Bitcoin funding rates have attained their highest values in 14 months. The Crypto Quant contributor further stated that the occurrence of high funding rates such as these usually resulted in Bitcoin experiencing a price pullback.  Funding rates are recurring payments made to either traders in a long or short position, depending on the difference between perpetual contract markets and spot prices. In essence, these payments serve as a method of maintaining the price of perpetual contracts close to the spot price of an asset – in this case, Bitcoin. That said, when there are highly positive funding rates on crypto exchanges, it indicates that traders are betting on the BTC/USD market to attain higher prices and are paying to go really long on BTC.  Trading positions such as these can be quite risky, as any slight price drop might lead to high levels of liquidation or force these traders to close their positions.  Therefore, these funding rates are definitely something that all BTC investors should keep their eyes on in the coming days. For now, Bitcoin is holding its ground, having gained by 1.83% in the last 24 hours, according to data by CoinMarketCap. At press time, the premier cryptocurrency is trading at $20,722.66, with a market cap value of $399.23 billion.  BTC Trading at $20,716 | Source: BTCUSD Chart on Tradingview.com.  Related Reading: Whale Moves Huge Amount Of Shiba Inu Tokens As SHIB Unveils To Metaverse What To Expect From Bitcoin In 2023? According to the popular price prediction site, BitNation, Bitcoin could attain a peak price of $37,307.77 before the years run out. Their price forecast also states that BTC investors should expect an average price of $31,084.84.  However, the team at Tradingbeasts are predicting a rather bearish Bitcoin market for 2023. According to their price projections, BTC is expected to record slight losses all through the year, closing its annual market with a maximum price of $18,339 and an average price of $14,671. So far, Bitcoin has shown a strong performance in 2023, gaining by over 25% since the beginning of the year. No doubt, the premier cryptocurrency is one asset to look out for in 2023.  Featured Image: Forbes, Chart from Tradingview.com  

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Ethereum Funding Rates Hit The Low Amid The Shift From PoW

The Ethereum upgrade has shifted the network from Proof-of-Work (PoW) to Proof-of-Stake (PoS). The Ethereum mainnet and the Beacon Chain will finally merge as a single blockchain through the transition. According to the estimations of EtherNodes, the Ethereum transition will occur if there are no underlying technical challenges. Before now, the team of developers confirmed the checklist for the Merge before releasing it. Related Reading: Investor Sentiment Sees Sharp Positive Spike Following Crypto Market Recovery There have been several sentiments and reactions concerning the Merge lately. This significantly impacted ETH and all its derivatives in the crypto market. Some participants are accumulating more expecting a sudden spike in price. But some are even disposing of what they have due to fear of volatility. Sentiments On Merge Affects ETH Funding Rates Currently, expectations and more attention are glued to the Ethereum blockchain. But based on the state of the miners, there could be variation in the transition estimated time. From the look of things, the ETH futures traders seem to be calculating their moves. The data from CryptoQuant revealed that Ethereum funding rates had hit a new all-time low. This recent point marks the lowest for the Ether derivatives. ETH funding rate is a metric that provides forced convergence of prices between the contract and the underlying asset. It indicates the payment that comes from long to short or short to long traders. The difference between an asset’s spot and the perpetual futures contract prices provides the funding rate. Negative Value For Ethereum Funding Rates And Implication CryptoQuant data give a negative value for the Ethereum funding rates. This means that the dominant force in the order book goes to short traders. Hence, will be paying long traders accordingly. Futures traders place high importance on funding rates. This is because these rates are like spontaneous catalysts that could alter their trading stance positively or negatively. As a result, they will make huge profits or suffer massive losses. Related Reading: Bitcoin Must Hold This Level Or Risk Falling To $10,000 Usually, traders that pay high funding while using high leverage will likely have losses. However, such a flip is possible to occur even when the market is not under a severe bearish influence. So, they may resort to hedging as protection. The negative value of the ETH funding rates implies that futures traders are currently hedging their spot exposure. A considerable explanation for such results points to the Merge. Hence, the traders could exercise more caution due to potential volatility that could erupt after the transition. Featured image from CNN, chart from TradingView.com

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Bitcoin’s sub-$40K range trading and mixed data reflect traders’ uncertainty

The market gave up last week’s gains from Bitcoin’s surge to $45,000, but derivatives metrics suggest retail traders are more bullish than market makers and whales.

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Bitcoin Primed For A Short Squeeze

Santa Rally after all? On-chain analysis shows that Bitcoin is primed for a short squeeze. If the bulls push Bitcoin to a daily close above $52k, we may see it sooner than later.  Covered: Bitcoin On-Chain Metrics The Funding Rate Metric Potential Short Squeeze Imminent One of the more critical on-chain metrics to look at […]

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Bitcoin Funding Turns Negative amid 70% of BTC Circulating Supply Being Hodled

BTC funding flipped negative following long liquidations as prices slipped to lows of $42,000. (Read More)

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Bitcoin Funding Rates Have Calmed Down - Has Greed in the BTC Market been Neutralized?

Bitcoin funding rates have slowed down since the leading cryptocurrency scaled to new heights of $69,000. (Read More)

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What Bitcoin correction? BTC price holds $55K despite several bearish indicators

Bitcoin price refuses to pull back despite Bollinger Bands and Fear and Greed pointing to an overheated rally.

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Pro traders cut their EOS longs, but retail FOMO and $50K+ BTC could tip the scale

On paper, EOS has great fundamentals, but derivatives markets suggest traders don’t feel the same about the altcoin’s price potential.

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Bitcoin Funding Flips Negative as BTC Records 10% Daily Loss as Over-Leverage Factor Dominates

The Bitcoin futures perpetual funding rate turned negative after the leading cryptocurrency recorded a 10% daily loss. Analysis suggests over-leverage factor may trigger the recent plunge. (Read More)

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